Requirements :

The word limit should not be more than 1,800 words.

Scenario :

Assume you just graduated from the University with a Finance degree and you plan to start your investment plan. You need some time to save enough money to start the plan and you prefer to start with relatively safe investment in the stock market (HK stocks only). Before you make the investment choice, you are advised to study the market. Prepare a report to justify your choices of one to two stocks in your portfolio for an investment horizon of about 3 5 years. Your report should include :

• Overview of the company/companies and the relevant industries.
• The expected holding-period return on your portfolio based on the latest market prices and prices forecasted by research analysts. You should make comments on their forecasts.
• The rationales for your choice, supported by qualitative and quantitative information.
• Your target annual return from the portfolio, with explanations.

Instead of making direct investment in stocks, you may consider buying mutual fund(s) from the bank. Explain the pros and cons of mutual fund investment and direct stock investment.